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SP's Military Yearbook 2021-2022
SP's Military Yearbook 2021-2022
       

Indigenisation - Tapping India's Potential

Issue: 10-2013By Air Marshal (RETD) Dhiraj KukrejaPhoto(s): By BAE Systems

India cannot afford to remain reliant on foreign nations to enhance its aerospace prowess. India needs to be independent and indigenous in its approach. The aerospace community within the country has the potential, it only needs to be nurtured and supported to break the shackles of imports.

Technology has become an indispensable module of national security. It has even been termed as a force-multiplier. In order to deal with the broad spectrum of national security issues, strategies have to be formulated with emphasis on technology. While economic strength is the main pillar of national power, military capability of a nation must also be enhanced in tandem, for which the armed forces need to be equipped with state-ofthe-art weapon systems. The volatile geopolitical and security situation in the region requires that India possess all-encompassing military wherewithal. This capability should be endowed with speedy response, adaptability to changing situations, long reach, precision targeting capabilities to minimise collateral damage and resources to transport all forms of national power wherever and whenever required.

Aerospace power, as represented by the Indian Air Force (IAF) and other aviation assets of the nation is the only answer. Wars fought in the recent past clearly establish that the 21st century belongs to aerospace power. Given the Indian aspirations to become a regional power with a global reach, it is necessary to possess an all-inclusive aerospace ability, preferably manufactured within the country.

Looking Back

In the three to four decades after independence, India saw some contribution by the scientific committee towards nation building with organisations like the Council of Scientific and Industrial Research (CSIR), the Defence Research and Development Organisation (DRDO), and the Indian Space Research Organisation (ISRO) being the flag-bearers. However, the armed forces have always depended and continue to depend on foreign sources for military hardware. Even 66 years after independence, India still compares very poorly with advanced nations in respect of scientific temper.

As things stand, India’s defence production base, especially in the aerospace sector, leaves much to be desired. Aerospace industry is technology-intensive and is intimately linked with several other industries of the nation. The Indian aerospace industry with the Hindustan Aeronautics Limited (HAL) at the helm has almost entirely been driven by military requirements, and the IAF has been the primary and captive customer. HAL, the oversized leviathan of the aviation industry in India, is just one of the three Indian defence industries among the top 100 in the world. With a turnover of about $3 billion, HAL has a track record of having manufactured 30 types of aircraft, both indigenous and manufactured under licence. Over the years, it has developed more than 2,000 tier-two suppliers and has production and R&D centres spread across the country. With a workforce of around 30,000, it is one of the largest aviation companies in Asia and is involved in almost all facets of aircraft manufacturing, namely, design, development, production, repair, overhaul of aircraft and engines, materials and systems. However, despite the impressive credentials as proclaimed, HAL has not been able to support the modernisation drive by the IAF.

Besides, nearly all its projects have suffered time and cost overruns. The sheer cost and complexity of aerospace technology, more so in the defence sector, requires a major drive towards indigenisation and self-reliance. Unfortunately, the Indian aerospace industry has been basking in the comfort zone on ‘licensed production’ with the bureaucracy harping on transfer of technology (ToT). While ToT would undoubtedly help introduce new technology in production, it would in no way help upgrade indigenous design and development capability as this would already have been done in the country of the original equipment manufacturer. There is, therefore, a need for a change of mindset to formulate fresh policies to facilitate correct decisionmaking across the spectrum of leadership, including political, scientific, bureaucratic and military.

Policy Focus

The Science and Technology Policy promulgated in 2001 was intended to focus on revising administrative and management structures in the various departments. The Revised Policy of 2003 re-emphasised the goal of self-reliance with added focus on sustainable and knowledge-based development. However, mere acquisition of technology without the backing of the appropriate levels of knowledge limits the advantages and could even have a negative impact on the development of genuine indigenous capabilities.

A landmark decision in 2001 was to allow the private sector for defence production with 100 per cent participation and up to 26 per cent foreign direct investment (FDI). This change in policy facilitating entry of the private sector into the exclusive domain of the defence public sector undertakings (DPSUs), generated considerable anticipation in the boardrooms of many a corporate house. Over the years, however, the enthusiasm has waned as effort on the part of the government to provide the necessary thrust has been feeble. The demand of the private industry for an increase in FDI to at least 49 per cent has been accepted by the government albeit on a case by case basis. Prospective partners of the private companies need greater participation and incentives, if they are to share technology which has been developed by them after high investments in research and development (R&D).

The aerospace industry employs high technology and is a high-risk industry which consequently implies high cost. The time has come for the government to take the private sector as a partner with generous financial and technical support as leaving them entirely on their own can be detrimental to the entire aerospace industry. This can be achieved through the formation of an Aeronautics Commission that has been talked about for the last five decades, but without real progress on ground.

There is a debate within the country on the direction the industry must take in the future. While some advocate the achievement of a capability to fully design, develop and produce a weapon system, there are others who argue that the aerospace industry should concentrate only on certain niche technologies and competitive products in partnership with foreign collaborators. The latter path would then mean that the nation would continue to depend upon import of advanced technology. If the private sector comes in with joint ventures and public-private partnership (PPP), it should be without riders or restrictions. Admittedly, India would still have to depend on imports for some time to come, but hopefully the path to self-reliance would open.

The Roadmap

During the last 15 years or so, the country has procured major airborne platforms and associated systems from the United States, Russia, UK, France, Italy, Brazil and Switzerland. The approach may be a good diplomatic and international trade initiative, but it is huge logistical, training and engineering challenge for the IAF and the other users. This process is driven by user requirement and lowest cost, but does not provide the necessary momentum for the local aerospace industry to become strong, competitive and self-reliant.

The Rustom UAV initiative is a unique experiment in the Indian context with the DRDO moving into a regime of concurrent engineering practices. The initial design efforts also take into consideration the production issues, with the production agency, a private company and not HAL, being involved in the development of the system from the design stage itself. If successful, this approach could become a trendsetter for projects in the future.

The government should formulate a national aerospace/aeronautics policy and put in place a department of aerospace/aeronautics, both to be guided by a long overdue National Aeronautics Commission. A proposal on this subject was first put forward in 1994 and later modified and re-submitted in 2004. As technology advances, costs rise on account of which even the advanced nations are now facing budget constraints. However, rising costs notwithstanding, the IAF would have to find the resources to fund aerospace R&D in defence and private sector laboratories under the tutelage of the Aeronautics Commission.

In an article penned on the eve of Aero India 1998 titled “Challenges Facing the Indian Aerospace Industry”, while giving an argument for restructuring this strategic industry, the author had concluded: “Aero India is an appropriate milestone for the beginning of this exciting journey such that when Aero India 2000 heralds the new millennium, Indian aerospace industry will be on the path of reorganisation, reconstruction and a focussed future. Only then can events such as Aero India become a meaningful trade promotion activity benefiting Indian aerospace. For the present, they mean little.” Sixteen years on, even after Aero India 2013, nothing much seems to have changed.

Movement of the aerospace industry towards indigenisation can only come from resolute leadership decisions. PPP that combines R&D, finance and industry is essential to absorb the cutting-edge technology that the aerospace industry so desperately needs. Those involved in decision-making, be they political leaders or the bureaucracy, should understand that they do not always know the best and hence consultations with the users, scientific community, academia are essential for induction of high technology. New policies have been promulgated to promote self-reliance in defence production, more so in the aerospace industry. Although this has been the stance of every successive government since independence, the Indian aerospace industry continues to be dependent on imports even for indigenous products.

India cannot afford to remain reliant on foreign nations to enhance its aerospace prowess. India needs to be independent and indigenous in its approach. The aerospace community within the country has the potential, it only needs to be nurtured and supported to break the shackles of imports.